The PERA Law allows Filipinos to create tax-exempt retirement savings accounts with investment options. It matters because it helps individuals save for retirement with tax incentives, providing financial security in later years.
Who’s covered?
According to the Securities and Exchange Commission, the guidelines apply to SEC-regulated entities wanting to register as PERA administrators or investment managers.
Securities brokers, investment houses, and fund managers can register as administrators, while only fund managers can apply as investment managers.
Others qualified by the SEC may also apply by submitting a qualification certificate request to the regulator.
Qualifications to become an administrator
To qualify as a PERA administrator, an entity must have at least P100 million in net worth, follow a Corporate Governance Manual, have a clear organizational structure, and possess the systems and expertise needed to manage PERA products.
The entity must also prove that its staff has received SEC-approved training to educate contributors about PERA.
Additionally, administrators are required to hold government securities equal to 1 percent of the total PERA assets they manage as a security deposit, separate from their capital, to ensure proper performance of their duties.
Temporary zero deposit requirement
The SEC has temporarily lowered the security deposit requirement to zero percent of PERA assets to encourage more participants to apply as administrators.
For PERA investment managers, applicants must have written procedures for supervising investment management and at least five years of professional experience. They also need to submit certified copies of their officers’ qualifications, compliance officer certification, a copy of the contract with contributors, and a list of fees they will charge for their services.
